News
tralac’s Daily News selection: 25 August 2015
The selection: Tuesday, 25 August
Call for removal of NTBs as COMESA embarks on the 2016-2020 MTSP (COMESA)
Assistant Secretary General Dr Kipyego Cheluget says the regional organization has made remarkable progress in regional integration over the years by developing innovative trade facilitation technologies. However, daunting challenges exist especially in implementing the protocol on free movement of people. He was speaking at COMESA Secretariat in Lusaka today when he officially opened the regional workshop to validate the draft COMESA 2016-2020 Medium Term Strategic Plan. The 2016-2020 Strategic Plan, to be adopted this year by the Council of Ministers, is expected to contribute to structural transformation of the economies of the COMESA Member States so as to foster the overall economic development of the Member States through trade and investment.
COMESA Research Forum: postgraduate programme in regional integration
The modalities on the establishment of a COMESA Virtual University was one of the key issues addressed during the first Annual COMESA Research Forum held on 10-14 August 2015 in Entebbe, Uganda. The programme would commence with 13 universities that were represented at the forum and those COMESA would consider through its selection criteria. This would be operationalized through a collaborative framework with one Host University and other collaborating ones. The program will provide practical skills to students to support trade negotiations, as well as enhance the process of regional integration.
Free movement of legal practice within ECOWAS states (The Nation)
EAC funding under threat as donors object to Nkurunziza's third term (The EastAfrican)
The EAC faces a funding crisis that could see many of its projects stall as donors call for the isolation of Burundi. Sources within the EAC Secretariat and the East Africa Legislative Assembly (EALA) in Arusha confirmed to The EastAfrican that GIZ, a leading German global development agency, has asked the bloc to exclude Burundi from all programmes that the agency funds on regional integration.
35th SADC Summit Brochure: Advancing the regional integration agenda (SARDC)
This publication, prepared by SARDC for the 35th SADC Summit in Botswana on 17-18 August 2015, provides a public record of SADC activities and achievements in the past year, including adoption of the industrialization strategy and the regional development plan, and launch of the Tripartite Free Trade Area with EAC and COMESA.
Regional integration in Africa: can the Tripartite FTA be a stepping stone toward a Continental FTA? (Brookings)
To transform the political will into reality, regional policymakers and negotiators need to address the following question: “How can we ensure that the TFTA is indeed a stepping stone and not a stumbling block towards the Continental FTA?" This is not a trivial question, and the answer is probably not straightforward. Whatever it is, it will definitely require more vigorous stakeholder (private sector, consumers, labour organizations, and CSOs) mobilization or consultation at the national level. In the predominantly mercantilist mindset that currently guides trade policymaking in many countries, the benefit accruing to the consumers in the form of reduced prices and increased product variety is unfortunately often ignored. Systematic awareness-raising activities regarding these types of benefits, accompanied by specific measures to compensate potential losers, could help broaden support for a gradual expansion of the TFTA toward the CFTA. [The author: Soamiely Andriamananjara]
Malawi discovers new mineral deposits (New Vision)
Impoverished Malawi announced that new mineral deposits had been discovered in a $30-million geophysical survey sponsored by the World Bank and the European Union. Natural resources and mining minister Bright Msaka did not specify the minerals, but other officials said they were phosphate, copper, coal, kimberlite, nobium and uranium. No details were given of the size or value of the deposits, nor any indication of whether they could transform Malawi's agriculture-based economy.
Magufuli: We'll transform economy (IPPmedia)
CCM presidential candidate Dr John Magufuli yesterday outlined his priorities, in line with the party’s 2015 Election Manifesto, underscoring the need to transform Tanzania’s economy through an industrial revolution. He said the government he would form if he wins the October 25 Presidential Election would invest heavily in the development of communication and other infrastructure, “with special emphasis on the industrial sector – such fisheries – which has been on the rocks for many years”.
Kandie: Our trade deal with Uganda (Daily Nation)
Addressing journalists at the Teleposta Towers in Nairobi, the CS said there were existing protocols protecting trade between East African Community partners, adding that there was no need for new “deals” to facilitate sugar imports from Uganda. The CS waded into the ongoing debate regarding an agreement to allow sugar from Uganda into Kenya, saying there was no such deal. “As long as the protocols still stand there is no need for any other agreement. The two heads of state made a decision to increase trade between the two countries. The discussions were on how to eliminate the trade barriers,” she said.
Turning Namibia into SADC's logistics hub (New Era)
Ondangwa Airport has undergone a major facelift and upgrade and now boasts a modern building and new terminal, constructed at a cost of N$84m. “Government has a clear intention to turn Namibia into the logistics hub of SADC and thus become a symbol of efficient service delivery to our neighbours, President Hage Geingob said at the inauguration of the new terminal. Most of the former military airports in the country are about to be transformed into civilian and commercial airports. The Namibia Airports Company has earmarked Walvis Bay and Hosea Kutako international airports for major upgrades and expansion after Ondangwa.
Swaziland needs 26km canal across Mozambique to be able to build US$3bn shipping port (Club of Mocambique)
The plan is to build a 26-kilometre canal from the Mozambican sea to Mlawula, where the port will be constructed on 15 to 20 hectares of land. Media in Swaziland report it will cost an estimated E30 billion (US$3 billion). The Times of Swaziland, the only independent daily newspaper in the kingdom where most news media are censored, reported the plan was confirmed by Minister of Commerce, Industry and Trade Gideon Dlamini.
Zimbabwe: ‘7 926 cars imported through Beitbridge’ (The Herald)
The Zimbabwe Revenue Authority) says it has handled a total of 7 926 imports of second-hand vehicles through Beitbridge Border Post between April and June this year. This brings to 13 904 the total number of cars imported through the same border post between January and June with a 5 978 vehicles coming in the first quarter of 2015.
CZI identifies strategies to help ailing economy (NewsDay)
Single Window clearance of cargo to make Kenya competitive in global trade (Business Daily)
Based on the present volume of goods imported and transit through Kenya, it is estimated that the streamlined procedures would result in savings to the economy ranging between $150 million (Sh15 billion) and $250 million (Sh25 billion) annually during the first three years. This is expected to increase to between $300 million (Sh21 billion) and $450 million (Sh31.5 billion) annually in subsequent years. The success of the Single Window system will be fully realised when the government strictly enforces the 24/7 economy through legislation that will allow 24-hour port operations as well as shippers fulfilling their obligations, including paying duties, providing documents on time, making accurate declaration, improving their systems (logistics audit) and employing best practices. [The author, Gilbert Langat, is chief executive of Shippers Council for Eastern Africa]
Regulatory frameworks on logistics regulations are often opaque, especially in developing countries, because of the complex nature of logistics services. World Bank client countries have faced difficulty finding the issues that hinder them from improving logistics competence. This note suggests that the regulatory framework should take into consideration national recognition of freight forwarding business, an institutional arrangement with clear division of responsibility among stakeholders, and streamlined but flexible regulations adapted to the country context. This note reviewed 14 countries: Brazil, China, Germany, Kenya, Japan, Nepal, Netherland, Pakistan, Philippines, Singapore, South Africa, Sudan, Thailand, and the United States.
The 2015 Brookings Financial and Digital Inclusion Project Report
The FDIP employs 33 indicators to comparatively evaluate access to and usage of affordable financial services among people excluded from formal financial services across 21 countries: Afghanistan, Bangladesh, Brazil, Chile, Colombia, Ethiopia, India, Indonesia, Kenya, Malawi, Mexico, Nigeria, Pakistan, Peru, the Philippines, Rwanda, South Africa, Tanzania, Turkey, Uganda, and Zambia. These countries were selected because they have all made recent commitments to financial inclusion and reflect political, economic, and geographic diversity. FDIP measures progress over time and explores:
Mineral policy and contract negotiations (UNECA)
The overarching objective of the course (24 August - 4 September) is to contribute to the development of a critical mass of highly skilled middle and senior policy officials and decision makers who will be suitably or better equipped to design and manage mining policy for the development of their countries, sub-regions and the continent.
South Africa - Japan: remarks by Deputy President Ramaphosa to Japanese Captains of Industry (GCIS)
However, it is important to note that although South Africa has been enjoying a trade surplus with Japan over the last 5 years, the composition of the trade basket needs to be addressed. Upon further reflection, we note that the top 10 South African exports to Japan were moreover commodity based consisting of amongst others, platinum, unwrought or in semi-manufactured forms; iron ore and iron pyrites. Analysis reveals that these top 10 exports accounted for 90% of total exports to Japan hence implying that exports are moreover concentrated in a few sectors. As Captains of Japanese Industries the onus is upon you to ensure that these trade imbalances are rectified in favour of a more diversified trade basket.
Ambassador upbeat over AGOA review (Business Day)
Despite a potentially contentious out-of-cycle review of the African Growth and Opportunity Act being under way in Washington, SA’s ambassador to the US, Mninwa Mahlangu, remains upbeat that the country will continue to benefit from the trade concessions provided in the arrangement. Mr Mahlangu said SA had made progress in addressing the red flags raised by the US.
SA to participate in AGOA Forum (iafrica)
SA-AGOA: Patent policy will only hobble health (Business Day)
Ministers Rob Davies and Ebrahim Patel meet domestic steel industry to discuss challenges (GCIS)
Western Cape: an investment utopia in risky SA (Business Day)
Bringing the state back in: India’s 2015 model BIT (CCSI)
India’s new model BIT reflects a shift toward governing the conduct of foreign investors, and away from mere protection. The author considers how changes in the 2015 Model serve to reinforce the role of the state, and notes key challenges that may arise in practice. [The author: Srividya Jandhyala] [Model text of the Indian Bilateral Investment Treaty]
India: Ease of doing business ranking out on 31 August (LiveMint)
African survey data point to robust growth (Financial Times)
Cement is the new oil as Africa’s richest man takes on Lafarge (Bloomberg)
Nigeria gets World Bank guarantee for 450 megawatt power plant (Bloomberg)
Citizen participation necessary for economic growth, Meles Zenawi symposium hears (AfDB)
Liberia’s accession to WTO sealed (FrontPageAfrica)
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